Bristol-Myers Appears Likely to Remain Independent: CNBC's Faber
Bristol-Myers Squibb's recent agreements with rival drug companies to develop and sell drugs is a signal that the company is committed to staying independent, reports CNBC's David Faber.
Earlier Thursday, the company announced a $1 billion deal with competitor Pfizer to help develop and market Bristol's promising apixaban drug to prevent blood clots. In January, AstraZeneca signed a deal with Bristol-Myers to develop and sell two of Bristol's experimental diabetes drugs.
CNBC's Faber said these deals make Bristol-Myers less alluring in the eyes of potential suitors.
"It makes you less attractive as a takeover target for other big pharmaceutical companies," Faber said earlier. "It would appear they are committed to staying independent, not to mention, of course, the decision to make (interim Chief Executive) James Cornelius the permanent CEO."
Bristol-Myers said Thursday it had named its interim Chief Executive James Cornelius as leader of the company for the next two years, and reported first-quarter earnings well above forecasts.
"When you hear that takeover talk, if it comes back on Bristol-Myers, do yourself a favor," Faber said. "It's probably better to ignore it at this point."